Stocks (Common Stock and Preferred Stock): These are two types of the share capital of a company. Common Stock represents the Common shares issued to the shareholders and preferred stock represents the preference shares issued. Preference shares are given preference in payment of dividends and repayment of capital. Common shareholders get the inbuilt right to vote in decisions of the company and preference shareholders generally do not get this right but they may get voting rights with special provisions. Cash dividend: The Cash dividend is the amount of dividend paid to shareholders in cash. The Cash dividend is declared first and paid later. There are two journal entries made, one at the time of declaration of dividend and another at the time of payment. To calculate: The balance of retained earnings as on 12/31/2019.
Solution Summary: The author explains that common stock and preferred stock are two types of the share capital of a company. The cash dividend is declared first and paid later.
Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.
Chapter 10, Problem 52BE
To determine
Concept introduction:
Stocks (Common Stock and Preferred Stock):
These are two types of the share capital of a company. Common Stock represents the Common shares issued to the shareholders and preferred stock represents the preference shares issued. Preference shares are given preference in payment of dividends and repayment of capital. Common shareholders get the inbuilt right to vote in decisions of the company and preference shareholders generally do not get this right but they may get voting rights with special provisions.
Cash dividend:
The Cash dividend is the amount of dividend paid to shareholders in cash. The Cash dividend is declared first and paid later. There are two journal entries made, one at the time of declaration of dividend and another at the time of payment.
To calculate:
The balance of retained earnings as on 12/31/2019.
What should be the amount stated as Ending Retained Earnings on the Statement of Retained Earnings given the following information?
Beginning Retained Earnings: $100
Revenue: $692
Expense: $370
Dividends: $87
The ending retained earnings balance is reported on both the retained earnings statement and the balance sheet. T or F.
What is ending Retained Earnings on this company's statement of retained earnings?
What is the correct title for this company's balance sheet?
a. Balance Sheet, Talbridge Ltd., Year ended December 31, 2021
b. Talbridge Ltd., Balance Sheet, December 31, 2021
c. Talbridge Ltd., Balance Sheet, Year ended December 31, 2021
d. December 31, 2021, Balance Sheet, Talbridge Ltd.
e. Talbridge Ltd., December 31, 2021, Balance Sheet
Enter the letter that corresponds to your choice. (A B C D E)
What is total current assets on this company's balance sheet?
What is the correct order for the current assets section of this company's balance sheet?
a. Cash (end of year), Accounts receivable, Prepaid insurance, Supplies, Website design, Business licence
b. Cash (beginning of year), Accounts receivable, Prepaid insurance, Supplies
c. Cash (end of year), Accounts receivable, Prepaid insurance, Supplies
d. Cash (beginning of year), Accounts receivable, Prepaid expenses,…
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